Prior to reading this article, please read:
The Inventory Map shows how inventory movements update the Inventory Quantity Available table and the General Ledger table.
There are four (4) types of inventory movements in Accounting Seed:
|Inventory Movement Types||Quantity Increase/Decrease||Records Entries in GL|
|Sales Order Inventory Movement||Decrease||Yes|
|Outbound Inventory Movement||Decrease||
Yes: if Type = Accounting
|Purchase Order Inventory Movement||Increase||Yes|
|Inbound Inventory Movement||Increase||Yes: if Type = Accounting
No: if Type = Non-Accounting
The following sections contain more information about how the inventory movements are used in controlling inventory and updating the general ledger.
Outbound Inventory Movements:
Decreases available inventory quantities
Sales Order Inventory Movement
A Sales Order inventory movement has no effect on the general ledger. It decreases the inventory quantity available when a sales order is allocated.
Outbound Inventory Movement
Both Outbound and Inbound inventory movements are used to record warehouse transfers and adjustments (up or down) to inventory quantity available records. Both of these types of inventory movements can be made with or without related accounting transactions.
Warehouse transfers do not have any impact on the general ledger and have no related accounting entries as a result. A warehouse transfer updates the inventory quantity available table for the correct location of a product in the warehouse.
Outbound and Inbound inventory transactions made with accounting entries have the type set as Accounting. These are typically used to process customer or vendor returns and correct stock levels due to damage, loss, or theft, etc. and are used in Accounting Seed's build process.
Inbound Inventory Movements:
Increases available inventory quantities
Purchase Order Inventory Movement
A Purchase Order inventory movement will increase the inventory quantity available when a purchase order is received. Receiving a purchase order has accounting transactions and will always debit the Inventory GL account set on the product record and credit the Vouchers Payable GL account set in Accounting Settings. The Vouchers Payable entry is relieved when the product is recorded as a payable.
Inbound Inventory Movement
Both Inbound and Outbound inventory movements are used to record warehouse transfers and adjustments (up or down) to inventory balances as described above. See Outbound Inventory Movement above.
- The map was updated with the Magnolia flower graphic.